Colfax acquires DJO Global for $3.1B in cash (2.6 X sales)

MedTechDive

Dive Brief:

Colfax has struck a $3.15 billion all-cash deal to acquire DJO Global, a manufacturer of orthopedic bracing and rehabilitation systems.
The acquisition moves industrial technology conglomerate Colfax into a new sector, medical devices, in a bid to increase its exposure to a market that has higher growth and margins than some of its existing areas of operation.
Colfax’s founders and CEO have experience in the medical sector from their time at Danaher, but investors nonetheless reacted negatively to the deal, sending the buyer’s stock down by 15%.

Dive Insight:
DJO...